Industrial Upgrading Through Foreign Direct Investment in Central European Automotive Manufacturing

By P. Pavlínek, B. Domański, R. Guzik. 2009

188 citations recorded by the source corpus.

This article draws on the global value-chain approach to investigate industrial upgrading in the automotive industry of four Central European (CE) countries: Czech Republic, Hungary, Poland and Slovakia. We review post-1990 production trends and the associated changes in the geography of automobile production in Central and Eastern Europe (CEE) based on inflows of foreign direct investment (FDI).To evaluate industrial upgrading, we examine the changes in the international trade of CE countries with automotive products classified in three value-added classes between 1996 and 2006, and we consider the increasing location of automotive design in CE by foreign investors.We classify CE automobile assembly plants into four types based upon the role of local design, local content, and their links with domestic economies. Based on the results of the analysis, we consider the effects of FDI and industrial upgrading on the role of CE in the European automotive production system.

Subfields: Economics and Econometrics, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/1f71e55827ca494fa1d538a3e337270722559ffe

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Economics and Econometrics

1. P. Pavlínek
2. Adrian Smith
3. A. Swain
4. J. Ženka
5. F. Kern
6. Michael Howlett
7. Jan Rotmans

In Strategy and Management

1. P. Pavlínek
2. Adrian Smith
3. A. Swain
4. J. Ženka

Citations in the corpus

• Upgrading in the automotive industry: firm-level evidence from Central Europe (2011, background): “First are the peripheries of automotive core regions such as Mexico in the case of the North American core region and Spain and Central and Eastern Europe (CEE) in the case of the West European core region (Humphrey and Oeter, 2000; Layan, 2000; Lung, 2000; Humphrey and Memedovic, 2003; Dicken, 2007”
• The Global Economic Crisis, Eastern Europe, and the Former Soviet Union: Models of Development and the Contradictions of Internationalization (2010, background): “These networks were invariably based on increasing levels of inward direct investment, as major component producers and assembly firms began to move into the region (Sadler and Swain, 1994; Pavlínek and Smith, 1998; Smith and Ferenčíkova, 1998; Swain, 1998; Pavlínek, 2002a, 2002b, 2003, 2008; Pickle”
• The Internationalization of Corporate R&D and the Automotive Industry R&D of East-Central Europe (2012, background): “The nature of this integration and the resultant position of ECE economies in the European division of labor, including corporate R&D, has predominantly been peripheral (e.g., Pavlínek, Domański, and Guzik 2009).”